ICICI Bank Q1 net surges 39.7% to ₹9,648 crore

July 22, 2023 08:19 pm | Updated 08:29 pm IST - MUMBAI

ICICI Bank Ltd. reported that its first quarter standalone net profit grew 39.7% to ₹9,648 crore from ₹6,905 crore in the year-ago period, primarily supported by a 38% rise in Net Interest Income (NII) during the quarter ended June 30, 2023.

NII increased to ₹18,227 crore from ₹13,210 crore a year ago. The net interest margin was 4.78% in Q1-2024 compared with 4.01% a year ago, the private sector lender said in a filing.

The bank made provisions (excluding provision for tax) of ₹1,292 crore for bad loans compared with ₹1,144 crore a year ago.

The net domestic advances during the quarter grew by 20.6% year-on-year (YoY). The retail loan portfolio grew by 21.9% YoY, and comprised 54.3% of the total loan portfolio. Including non-fund outstanding, the retail portfolio was 45.9% of the total portfolio at June 30, 2023, Sandeep Batra, Executive Director, ICICI Bank said over a conference call.

He said the business banking portfolio grew by 30.4% YoY and the SME business, comprising borrowers with a turnover of less than ₹250 crore grew by 28.5% YoY.

The rural portfolio grew by 17.6% YoY and the domestic corporate portfolio grew by 19.3% YoY, he said.

“We would like to keep growing in a risk calibrated manner,” Mr. Batra said.

The bank’s total advances increased by 18.1% YoY to ₹ 10,57,583 crore at June 30, 2023. The bank’s gross NPA ratio was lower at 2.76% at June 30, 2023 compared with 3.41% a year ago. The net NPA ratio was down at 0.48% as compared with 0.70% a year ago.

The net addition to gross NPAs, excluding write-offs and sale, was ₹1,807 crore in Q1-2024 compared to ₹14 crore in the previous quarter, the bank said in a press release.

The gross NPA addition was ₹5,318 crore in the latest quarter as compared with ₹4,297 crore in the previous quarter.

Recoveries and upgrades of NPAs, excluding write-offs and sale, were ₹3,511 crore in Q1-2024 compared to ₹4,283 crore in Q4-2023, the bank said.

Mr. Batra said the bank has written off gross NPAs amounting to ₹1,169 crore in Q1. The provision coverage ratio on NPAs was 82.4% at June 30, 2023, he said.

Bulk of the NPAs for the quarter were from corporate borrowers and Kisan Credit Card holders.

Excluding NPAs, the total fund-based outstanding to all borrowers under resolution as per the various extant regulations/guidelines declined to ₹3,946 crore or 0.4% of total advances at June 30, 2023 from ₹4,508 crore at March 31, 2023.

The bank, he said, holds provisions amounting to ₹1,224 crore against these borrowers under resolution. In addition, the bank continues to hold contingency provisions of ₹13,100 crore as of June 30, 2023.

The loan and non-fund based outstanding of ₹4,276 crore as of June 30, 2023 included ₹727 crore to borrowers under resolution.

Including profits for Q1, the bank’s total capital adequacy ratio at June 30, 2023 was 17.47% and Tier-1 capital adequacy was 16.76% as against the minimum regulatory requirements of 11.70% and 9.70% respectively.

The bank reported consolidated profit after tax of ₹10,636 crore, up 44% from the year-ago period. Consolidated assets grew by 17.0% YoY to ₹ 2,039,897 crore.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.